Imo, Kogi, 29 Other States Owe CBN N340bn Bailout Funds Used to Pay Workers' Salaries

Imo, Kogi, 29 Other States Owe CBN N340bn Bailout Funds Used to Pay Workers' Salaries

  • A CBN report has disclosed that about 31 states in Nigeria owe the apex bank the combined sum of N340 billion
  • The funds were disbursed to state governments under the Salary Bailout Facility to help settle workers' salaries.
  • The report stated that these debts were accumulated between 2015 and 2023 under the leadership of Godwin Emefiele journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Information sourced from the Central Bank of Nigeria has shown that a total of N339.9 billion is owed by thirty-one state governments for loans acquired between 2015 and 2023 to cover workers' salaries.

Additionally, as of September 2023, these state governments still had outstanding debts totalling N339.97 billion, alongside a default on a loan amounting to N1.31 billion.

Read also

First Bank, FCMB, Jaiz, others generate N495bn from e-banking, others amid Fintech disruption

Olayemi Cardoso suspended the program started during Godwin Emefiele's tenure
Current CBN governor Olayemi Cardoso halted the Salary Bailout Funds program started during Godwin Emefiele's tenure. Photo credit - CBN, The Africa Report
Source: UGC

These funds were obtained through the Salary Bailout Facility, a program initiated by the CBN to address the fiscal strains experienced by states.

This intervention was part of the larger N10.3 trillion intervention fund made accessible by the apex bank during the tenure of the former CBN governor, Godwin Emefiele.

The present governor, Olayemi Cardoso, halted the program, emphasising that the apex bank could not sustain further intervention initiatives amidst the current economic crisis.

Breakdown of debts

According to The Punch, a breakdown of the report's findings shows that 31 state governments were recipients of the initiative, amounting to a total disbursement of N457.17 billion.

Despite this significant disbursement, the repayments on the principal sum have amounted to N117.21 billion, accompanied by interest repayments of N45.21 billion.

Read also

Tinubu’s new borrowings take Nigeria’s public debt surging to N97.34 trillion

Furthermore, the report indicates that collectively, the states borrowed N457.17 billion to settle the salaries of their civil servants, along with an overdue amount of N1.31 billion.

Highlighted in the report are the primary beneficiaries of the bailout facility, with Imo leading at N20.46 billion, followed by Kogi at N20.26 billion, Kano at N20.21 billion, Oyo at N16.81 billion, and Osun at N15.93 billion.

The states' failure to meet their fundamental obligation to their workforce has become a pressing concern, particularly amidst the advocacy by labour unions for an increase in the minimum wage from the current N30,000.

Access Bank, others provided loans

During the first half of 2023, an examination of the financial statements of Access Bank, Fidelity Bank, and the Zenith Bank Group revealed that state governments borrowed approximately N46.17 billion from these institutions to cover salary payments between January and June.

Access Bank emerged as the primary lender during this period, extending loans totalling N42.97 billion to the states.

Read also

New exchange rate emerges as naira gains against dollar at N1,453.82 in official market

Following Access Bank, Zenith Bank provided loans amounting to N1.78 billion, while Fidelity Bank disbursed N1.42 billion within the same six-month timeframe.

FG announces $30bn investment commitments

Meanwhile, reported that the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, announced that several international and domestic investors have pledged to invest over $30 billion in the Nigerian economy.

Uzoka-Anite disclosed this during a press briefing organised by the Ministry of Information and National Orientation, noting that the investments are already underway but did not disclose the beneficiary sectors.

The minister attributed the investments to President Bola Tinubu's diplomatic travels and engagements, especially to India with stakeholders in the oil and gas industry.


Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via and +2348063274521.